Wesley Mouch's Auto Loan Requires Monthly Payments and Has an Effect

question 65

Multiple Choice

Wesley Mouch's auto loan requires monthly payments and has an effect annual rate of 6.43%.The APR on this auto loan is closest to:

• A) 6.00%
• B) 6.25%
• C) 6.50%
• D) 6.62%

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Definitions:

Parol Evidence Rule

A legal principle that prevents parties in a contract dispute from presenting evidence of prior or concurrent oral agreements that would contradict the written terms of the contract.

Rent

The payment made by a tenant to a landlord for the use of a property, room, or apartment for a designated period.

Profits

The financial gain derived from a business activity after deducting expenses.

Rectification

The legal process of amending a document or agreement to reflect what the parties intended to agree upon.